Question: answers all the questions QUESTION 1 CASE STUDY ANNUAL WORTH ANALYSIS-THEN AND NOW Background and Information Mohamad, owner of an residential furnished apartment's in Dubai,

 answers all the questions QUESTION 1 CASE STUDY ANNUAL WORTH ANALYSIS-THEN
AND NOW Background and Information Mohamad, owner of an residential furnished apartment's
in Dubai, performed an economic analysis 4 years ago when he decided
answers all the questions

QUESTION 1 CASE STUDY ANNUAL WORTH ANALYSIS-THEN AND NOW Background and Information Mohamad, owner of an residential furnished apartment's in Dubai, performed an economic analysis 4 years ago when he decided to place an new eefficient central AC unit for each apartments instead of old split units windows type in each room. The estimates used and the annual worth analysis at MARR 12% are summarized below. Two different AC brands were compared, LG York Cost and installation, $ -26,000-30,000 Annual maintenance cost, $ per year -800 -300 Salvage value, $ 2,000 3,000 Electrical power savings, 5 per year 25,000 35,000 Useful life, years 7 10 The spreadsheet in below sheet is the one Mohamad used to make the decision. York was the clear choice due to its substantially larger AW value, hence York AC units were installed MARR 1296 LG York $0 450 Investment Annual Tears and salvage maintenance 0 526,000 SO 150 $800 2 so $800 3150 -$800 $800 550 5800 650 5800 7 $2.000 $800 8 9 10 AW element $6,068 $800 Total AW Repair Investment savings and salvage so $30,000 $25,000 $0 $25,000 $25,000 50 $25,000 SO $25,000 SO $25,000 $0 $25.000 $0 $0 $0 $3,000 $25,000 $5,139 $18,701.17 Annual Repair maintenance savings $0 $0 $300 $35,000 -5300 $35,000 -$300 $35,000 -$300 $35.000 $300 $35,000 $300 $35,000 $300 $35,000 -$300 $35,000 $300 $35.000 -$300 $35,000 $300 $35,000 $29,561.43 During a quick review (Year 4 of operation), it was obvious that the maintenance costs and repair savings have not followed (and will not follow) the estimates made 4 years ago. In fact, the maintenance contract cost is going from $300 this year (year 4) to $1200 per year next year and will then increase 9% per vear for the next 6 years. Also, the electrical power savings for the last 4 years were $31,312 year 1). $27,565 ( year 2). $30,4931 year3), and $32,9031 yeard), as best as Mohamad can determine. He believes savings will decrease by $1,500 per year hereafter. Finally, these 4-year-old AC units are worth nothing on the market now, so the salvage is zero, not $3000. 01. With thace Q1. With these new estimates, What is the AW of the Investment and Salvage value for YORK AC uniti Q2. With these new estimates, What is the FW of the Investment and Salvage value for YORK AC unit? I Q3. With these new estimates, what is the recalculated AW maintenance cost for the YORK AC units? For Blank 2 04. With these new estimates, what is the recalculated PW maintenance cost for the YORK AC units? QS. With these new estimates, what is the recalculated Total AW cost for YORK AC units Q6. With these new estimates, what is the recalculated Total FW cost for YORK AC units. Q7. With these new estimates, what is the recalculated Total PW cost for YORK AC units. Q8 - If these estimates had been made 4 years ago, would YORK still have been the economic choice, why explain your answer 09 - What is difference in capital recovery amount for the YORK units with these new estimates? Q10 - If MARR is changed to 8% for the upcoming 6 years what will be the Total PW for the YORK units

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